Risk Management for Fraternities Sororities

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					               Risk Management for Fraternities & Sororities
                                   Dr. Ron Binder
                    “You can never get rid of risk, only manage it”

                                           Liability Line
_____________________________________________________________
0% liability (ceasing to exist)                             (violating all policies) 100% liability

                       Five Greatest Areas of Risk for Greeks
                                  1.   Housing
                                  2.   Hazing
                                  3.   Alcohol Abuse (not use)
                                  4.   Sexual Assault
                                  5.   Fighting

                             Risk Management Principles

                                   1. Identify risky behavior
              Can someone get hurt?, Has someone gotten hurt in the past?

                                  2. Eliminate or Reduce Risk
                            Most times we can only reduce the risk

      Criminal Liability                              Civil Liability
      Illegal Acts                                    Being sued by someone
      Hazing                                          Results in damages
      Supplying alcohol                               Largest settled suit $21 million
      Dealing or using drugs                          Largest filed suit $100 million
      Fighting                                        56% of the time we are sued by members

                             National Liability Insurance
            Most national headquarters provide $1 million in insurance coverage
            Average fraternity pays $150/member, sorority pays $100, highest $240
            Does not cover anything illegal or against your national policy

               What happens if you violate your national policy?
            Liability insurance is cancelled
            Chapter is on its own to pay for any lawsuits
            Most members are still under their parent’s homeowners insurance policies

                                  What is a Chapter Event?
             1. Who paid for the event?
                    Purchasing alcohol, everyone throwing in money to purchase
                      alcohol, hall rental, transportation, etc.
             2. How was the event advertised?
                    Flyers on bulletin boards, in a chapter house, posted on the
                      chapter listserve, announcements at meetings, Facebook
             3. Were Officers present?
                    Chapter president and/or social chair present is hard to argue
             4. What percentage of the members were present?
                    Above 50% of the chapter is hard to argue
                    Most national policies are much more restrictive

                           Four Riskiest Nights for Greeks
                   1. Bid Day 2. Big Brother 3. Initiation 4. 21st Birthday

 If members followed their Ritual, there would be no need for risk management